Office: 423.323.0252 Office Hours Start FAFSA  Financial Aid Help Center 
Fax: 423.323.0232 Monday - Thursday 7:30am to 4:30pm
Room C2406 Friday 7:30am to 4:30pm
  Federal School Code 005378


Alternative Loans 

 What is an Alternative/Private Student Loan? 


  • A credit-based student loan applied for through individual lenders and processed by the institution.
  • A student loan to help “bridge the gap” between a student’s awarded financial aid and the Cost of Education budget.


What is a Private Bank/Credit Union Loan? 


  • Private Bank/Credit Union student loans that are not processed by the institution are private loans processed directly through a third party bank/credit union. These types of loans do not come through the financial aid office and all information is between the bank and the student.  


Who should consider an Alternative/Private Student loan? 


  • Private student loans may be an important source of funding for any students who are in need of funding beyond that which federal programs provide during the year.


 How much of an Alternative/Private Student Loan can I request? 


  • Students can request alternative/private student loans in an amount not to exceed the Cost of Education minus all other accepted financial aid and resources.


How do I apply for an Alternative/Private student loan at Northeast State? 


  • Northeast State recommends that you complete a FAFSA each year to determine your eligibility for Title IV aid.


  • Search for a lender by using a search engine and typing in “Alternative Loans”. Research each lender carefully to see which one provides the best terms and conditions for you. Apply to the lender directly by completing the application process. Co-signers may be required.


  • Once approved, the lender will notify the financial aid office of the approval along with terms.


  • All loans are processed in date order.


  • Alternative/Private Student loans may have a “right to cancel” stipulation. Please ask your lender about this stipulation.


  • All disbursements will be sent from the lender as a check and will include both the student’s name and the school name. All disbursements will need to be endorsed by the student and applied to the student’s account. Once all Northeast State fees and tuition are paid any remaining amount will be released to the student during the standard check process.


  • Students may be required to pay fees and tuition out of pocket and reimburse themselves once the funds are released. There are no deferments for Alternative/Private Loans.


Can the Office of Financial Aid recommend a lender for Alternative/Private Student Loans? 


According to Title X of the Higher Education Opportunity Act, educational institutions are not permitted to recommend alternative/private lenders to students.